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June 20, 2021
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Accumulated depreciation

  • June 20, 2021
  • 1 reply
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Should the opening balance for accumulated depreciation be put in the system as a negative amount

Example:

fixed asset

Accumulated depreciation 

opening balance    -50,000

 

 

 

 

Best answer by Rustler

No, accumulated depreciation is a contra account, it lowers the fixed asset items cost on the balance sheet.

 

Accum depreciation is a credit entry, with the offset account usually being depreciation expense (debit)

1 reply

Rustler
RustlerAnswer
June 21, 2021

No, accumulated depreciation is a contra account, it lowers the fixed asset items cost on the balance sheet.

 

Accum depreciation is a credit entry, with the offset account usually being depreciation expense (debit)